ences Mailings Review View Table Design Layout Norma No SpacingHeading Chapter 6 Homework Definitions Average Cost Method First-in, First-out (FIFO) Just-in-time Inventory Consigned Goods Current Replacement Cost FOB Destination FOB Shipping Point Last-in, Last-out (LIFO) Days In Inventory Inventory Turnover LIFO Reserve Lower-ofcost-or-market Weighted-average Unit Cost Specific Identification A basis whereby inventory is stated at lower of either its cost or its market value as determined by current replacement cost 1. 2. B. 4. 5. 6. 7. Inventory system in which companies manufacture or purchase goods only when needed Measure inventory turnover of the average number of days inventory is held: calculated as 365 divided by Freight terms indicating that ownership of goods passes to the buyer when the public carrier accepts the goods from the seller For a company using LIFO, the difference between inventory reported using LIFO and inventory using FIFO Goods held for sale by one party although ownership of the goods is retained by another party An actual physical-flow costing method in which particular items sold and item still in inventory are specifically costed to arrive at cost of goods sold and ending inventory A ratio that indicates the liquidity of inventory by measuring the number of times average inventory is sold during the period: computed by dividing cost of goods sold by the average inventory during the period 9. An inventory costing method that assumes that the latest units purchased are the first to be sold 10. An inventory costing method that assumes that the earliest goods purchased are the first to be sold The cost of purchasing the same goods at the present time from the usual suppliers in the usual quantities. Average cost that is weighted by the number of units purchased at each unit cost Freight terms indicating that ownership of goods remains with the seller until the goods reach the buyer An inventory costing method that uses the weighted average unit cost to allocate the cost of goods available for sale to ending inventory and cost of goods sold 12. 13. 14. United States) O Focus